GEN COMBO FUNDAMENTALS OF COST ACCOUNTING; CONNECT 1S ACCESS CARD
5th Edition
ISBN: 9781259911651
Author: William N. Lanen Professor
Publisher: McGraw-Hill Education
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Chapter 10, Problem 61P
To determine
Determine the cost system according to the information given in the question.
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Kate's Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computes
the manufacturing overhead rate on a quarterly basis based upon the planned number of units to be produced that quarter. The
following data are from the projections of Kate's Kale Chips for the upcoming quarter:
Sales
Production
Variable manufacturing cost per bag
Sales and distribution costs per bag
Total fixed manufacturing overhead
Fixed administrative overhead
1. Product cost under full costing
2.
Projections
22,500 bags
24,500 bags
$2.50
$ 0.40
Required:
1. Compute the projected product cost per bag produced under full costing.
2. Compute the projected product cost per bag under variable costing.
(Round your answers to 2 decimal places.)
Product cost under variable costing
$ 49,000
$ 20,500
per bag
per bag
Cove's Cakes is a local bakery. Price and cost information follows:
Price per cake
Variable cost per cake
Ingredients
Direct labor
Overhead (box, etc.)
Fixed costs per month
Required:
1. Calculate Cove's new break-even point under each of the following independent scenarios:
a. Sales price increases by $1.10 per cake.
b. Fixed costs increase by $515 per month.
c. Variable costs decrease by $0.30 per cake.
d. Sales price decreases by $0.50 per cake.
2. Assume that Cove sold 485 cakes last month. Calculate the company's degree of operating leverage.
3. Using the degree of operating leverage, calculate the change in profit caused by a 9 percent increase in sales revenue.
Required 1
$ 13.01
2.31
1.07
0.16
4,356.20
Complete this question by entering your answers in the tabs below.
Required 2
Required 3
Calculate Cove's new break-even point under each of the following independent scenarios:
Note: Round your answers to the nearest whole number.
a. Sales price increases by $1.10 per cake.
b.…
Cove's Cakes is a local bakery. Price and cost information follows:
Price per cake
Variable cost per cake
Ingredients
Direct labor
Overhead (box, etc.)
Fixed costs per month
Required:
1. Calculate Cove's new break-even point under each of the following independent scenarios:
a. Sales price increases by $1.80 per cake.
b. Fixed costs increase by $505 per month.
c. Variable costs decrease by $0.37 per cake.
$ 13.61
2.27
1.05
0.17
4,351.60
d. Sales price decreases by $0.50 per cake.
2. Assume that Cove sold 450 cakes last month. Calculate the company's degree of operating leverage.
3. Using the degree of operating leverage, calculate the change in profit caused by a 15 percent increase in sales revenue.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
Calculate Cove's new break-even point under each of the following independent scenarios:
Note: Round your answers to the nearest whole number.
1a Salas nrice increases hy $1 A0 ner raka
a.…
Chapter 10 Solutions
GEN COMBO FUNDAMENTALS OF COST ACCOUNTING; CONNECT 1S ACCESS CARD
Ch. 10 - How are activity-based costing and activity-based...Ch. 10 - Can activity-based management be implemented...Ch. 10 - Prob. 3RQCh. 10 - What are some ways in which customers affect a...Ch. 10 - How is computing the cost of customers the same as...Ch. 10 - Prob. 6RQCh. 10 - Prob. 7RQCh. 10 - Under what conditions should the cost of excess...Ch. 10 - In what ways does quality affect cost?Ch. 10 - What are the four categories in a cost of quality...
Ch. 10 - Prob. 11CADQCh. 10 - Prob. 12CADQCh. 10 - Consider a library that spends 25,000 to move most...Ch. 10 - Prob. 14CADQCh. 10 - Prob. 15CADQCh. 10 - You can get the cost of customers by first...Ch. 10 - Prob. 17CADQCh. 10 - Prob. 18CADQCh. 10 - Prob. 19CADQCh. 10 - Prob. 20CADQCh. 10 - Many if not most schools in the United States have...Ch. 10 - Prob. 22CADQCh. 10 - Prob. 23CADQCh. 10 - Prob. 24ECh. 10 - Prob. 25ECh. 10 - Cost Hierarchy for a Not-for-Profit Below are...Ch. 10 - Prob. 27ECh. 10 - Driver Identification Below are various activities...Ch. 10 - Activity-Based Costing of Customers Marvins...Ch. 10 - Activity-Based Costing of Customers Rock Solid...Ch. 10 - Activity-Based Costing of Customers Refer to the...Ch. 10 - Activity-Based Costing of Customers: Ethical...Ch. 10 - Prob. 33ECh. 10 - Activity-Based Costing of Suppliers Hult Games...Ch. 10 - Prob. 35ECh. 10 - Activity-Based Costing of Suppliers Kinnear...Ch. 10 - Activity-Based Costing of Suppliers Refer to the...Ch. 10 - Resources Used versus Resources Supplied Tri-State...Ch. 10 - Prob. 39ECh. 10 - Resources Used versus Resources Supplied Conlon...Ch. 10 - Prob. 41ECh. 10 - Prob. 42ECh. 10 - Assigning Cost of Capacity Mimis Fixtures...Ch. 10 - Assigning Cost of Capacity Curts Casting...Ch. 10 - Prob. 45ECh. 10 - Costs of Quality The following represents the...Ch. 10 - Trading-Off Costs of Quality Using the costs...Ch. 10 - Costs of Quality Nuke-It-Now manufactures...Ch. 10 - Prob. 49ECh. 10 - Cost of Quality: Environmental Issues Many...Ch. 10 - Prob. 51ECh. 10 - Prob. 52PCh. 10 - Activity-Based Reporting: Service Organization...Ch. 10 - Prob. 54PCh. 10 - Customer Profitability Carmel Company has a...Ch. 10 - Activity-Based Costing of Suppliers JFI Foods...Ch. 10 - Activity-Based Costing of Suppliers Consider the...Ch. 10 - Activity-Based Reporting: Manufacturing...Ch. 10 - Assigning Capacity Costs Cathy and Toms Specialty...Ch. 10 - Prob. 60PCh. 10 - Prob. 61PCh. 10 - Assigning Capacity Costs Mercia Chocolates...Ch. 10 - Prob. 63PCh. 10 - Prob. 64PCh. 10 - Prob. 65P
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